Tesla is the latest electric vehicle manufacturer to announce ambitious growth in spending. The company announced this week it will boost spending by about $1 billion to ramp up its factories, develop new batteries and finance other projects.
Tesla expects its capital expenditures to be $6 billion to $8 billion in 2022, up from an April forecast of $5 billion to $7 billion.
“We are focused on growing our manufacturing capacity, which includes ramping all of our production vehicles to their installed production capacities as well as increasing capacity at our current factories. Our current production continues to be affected by the industry-wide semiconductor and other component shortages, requiring additional workaround manufacturing and production design solutions to be implemented which may be difficult to sustain. The next phase of production growth will depend on the ramp at Gigafactory Berlin-Brandenburg and Gigafactory Texas and the upgrade and expansion of Gigafactory Shanghai, as well as our ability to add to our available sources of battery cell supply by manufacturing our own cells that we are developing to have high-volume output, lower capital and production costs and longer range,” the company stated in its latest SEC filing.
Tesla CEO Elon Musk has complained recently about the start-up issues with the new factories in Austin, Texas and Berlin, Germany, describing them as “money furnaces” that were draining resources but not producing enough cars.
Tesla has produced 563,987 vehicles and delivered 564,743 vehicles through the second quarter, despite the ongoing supply chain challenges and factory shutdowns.